You’re right. Once it settles into its niches and the hype dies down, it won’t be overhyped anymore because everyone will have moved on.
I’ve been working with generative AI for years now and we still struggle to solve real world problems with it. It isn’t useless or anything. It’s way too unreliable, and this isn’t one of those things where time will solve it - it’s being used to solve problems that have no perfect solutions, like human interfacing and generating culturally-appropriate and visually-accurate images. I’d expect it to improve at those tasks over time, but the scope needs to drop from every problem humanity has ever faced to the problems that these models are good at solving.